Like the odds of Leicester City winning the Premier League title, mortgage rates in the UK continue to fall as the threat of an interest rate rise depletes.
The fall in mortgage rates comes after the Monetary Policy Committee (MPC) voted unanimously to keep the Bank of England Bank Rate at 0.5% for the 84th month in a row in March. Two and three-year fixed rates were among the biggest movers, with the average three-year rate falling 0.09% and the average two-year falling 0.02%.
Why are prices falling?
Experts in the market, including the shadow MPC, are now predicting a rise in rates to occur around 2018, with some suggesting as late as 2020, and this is giving lenders the confidence that consumers will be able to make their payments on their mortgages more easily for longer.
This comes as good news for both potential buyers and current home-owners that are looking to remortgage their properties as they can look to lock into new deals with lower mortgage rates to pay lower monthly repayments before the rates do rise.
Low mortgage rates look set to stay for some time, and there is an appetite among lenders for business, leaving consumers in a good position to reap the benefits of the increased competition.
Do I have more choice now?
Our own research shows that, when compared to the same time last year, a borrower that took out a two-year fixed rate in February made an average saving of £53 per month in repayments, and with more mortgage products being on offer, consumers are continuing to benefit.
There was also a 3% rise in the number of mortgage products available to consumers in February, which is obviously great news for potential borrowers as advisers now have a greater choice of products to choose from to match to their needs.
Whilst the average two and three-year deals are at record lows, buyers with larger deposits are still set to obtain the biggest rewards, with lower loan-to-value mortgages attracting the better deals from lenders.
With all of the low interest rates around, now could be the time to remortgage or buy your first home. However, with tougher affordability criteria and varying rules in the mortgage world, seeking advice from a professional mortgage adviser is imperative in ensuring that you get the deal that is right for your circumstances.
Paul Wood from Pygott and Crone – for further information call: 0800 917 7404
Email: info@pygott-crone.com or visit: www.pygott-cronefinancial.com.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £395 of the amount borrowed.
For more company news and insights from Pygott & Crone, click here
Latest news
The autumn deadline student tenants need on their radar
The autumn deadline student tenants need on their radar Most of the changes introduced by the Renters' Rights Act on 1 May 2026 work in tenants' favour: stronger security of tenure, no more no-fault evictions, and the freedom to leave at any point with two months' written notice.
What your landlord must do with your deposit, and by when
What your landlord must do with your deposit, and by when When you hand over a deposit at the start of a private tenancy in England or Wales, the law sets out precisely what your landlord must do with it and when.
Why first-time buyers pay wildly different stamp duty depending on where they buy
Why first-time buyers pay wildly different stamp duty depending on where they buy First-time buyers in England start from the same point on paper: a stamp duty relief threshold that means no tax is paid on the first £300,000 of a purchase price.
Three heatwaves, three dips, one resilient buyer market
Three heatwaves, three dips, one resilient buyer market The summer of 2026 tested the UK property market with an unusual combination of pressures: three separate heatwaves, a World Cup, a period of political uncertainty, and elevated mortgage rates following the conflict in Iran.
